News24

Lance: Firm wants R65m back

2012-10-22 22:22

Los Angeles - Dallas insurance company SCA Promotions is demanding the return of millions of dollars in bonuses paid to Lance Armstrong now that the shamed cyclist's Tour de France victories have been expunged.

"Mr Armstrong is no longer the official winner of any Tour de France races and as a result it is inappropriate and improper for him to retain any bonus payments made by SCA," Jeffrey Dorough, general counsel for the firm, said on Monday in a telephone interview.

On Monday in Geneva, the International Cycling Union (UCI) officially backed the US Anti-Doping Agency's decision to effectively erase Armstrong's cycling record, including the seven Tour de France titles he won from 1999-2005.

USADA this month released a devastating dossier on Armstrong, putting him at the heart of the biggest doping programme in the history of sport.

Dorough confirmed that SCA was seeking $7.5m (R64.8m) paid out to Armstrong after a 2006 arbitration proceeding, which included a $5m bonus as well as legal fees and interest.

During Armstrong's era of dominance, US Postal Service team parent company Tailwind Sports took out a policy with SCA, paying a premium to cover bonuses paid to Armstrong for his Tour de France victories.

When SCA withheld a $5m (R43.2m) bonus due after Armstrong's sixth Tour de France win in 2004 because of the doping allegations made in the book "LA Confidential," Armstrong took successful legal action.

Armstrong won that case, on the basis that the original contract between SCA and Tailwind Sports did not include any stipulations about doping.

Velonation reported that SCA in fact paid a total of $12m to Armstrong in bonuses over the years.

"The only figure I can confirm is the $7.5m paid to Mr Armstrong in 2006 pursuant to the arbitration," Dorough said, but added: "Any sum that was paid by SCA would be in play."

AFP

Comments
  • gordon.turner.37 - 2012-10-22 22:39

    Fantastic. Life lesson for those who want to learn it. Parents bring your kids.

      Jacques - 2012-10-22 23:39

      Well said haha

      Juandre van Heerden - 2012-10-22 23:42

      andrez.kolesky - 2012-10-23 00:51

      ISM ??

      zander.venter.14 - 2012-10-23 11:22

      Fun fact, if they had to give his wins to the next person who was eligible and not involved in a doping scandel in some way shape or form, it would go down to the 23th place avarage

      Ryan - 2012-10-23 22:46

      Agreed

      thomas.cannon.712 - 2012-10-23 23:54

      Zander!! 23th???????? Otherwise good one!!

  • lala.kunene - 2012-10-23 01:54

    mmmm* just clearning throat*

  • roy.wadhams.1 - 2012-10-23 06:36

    "NAIL" him and ALL those crooks who benefit from being dishonest in sport. Wonder how many of our sportsman are in the same boat?

      merven.halo - 2012-10-23 09:00

      Sadly for Armstrong he is not living in SA. Then he could keep his bonuses and they'd pay him another R65million to voluntarily retire.

  • roy.wadhams.1 - 2012-10-23 06:39

    "Nail" him and all those who commit this type of fraud. Wonder how many of our own sportsman do this type of thing?

  • Riaan - 2012-10-23 06:56

    I see a fat,ugly OJ Simpson style courtcase on the way,nd dont the Americans like that!!LA won't just give millions back 2 everybody,that's admission of quilt,and jail time,alias Marion Jones,catch 22!!

      jo.barton.92 - 2012-10-23 07:14

      Unfortunately, the evidence is way too much to ignore. There are too many people who have testified against him with proof. He cannot deny this any more.

  • motleleng - 2012-10-23 07:25

    What a shame...kids, lesson number one, \Don't do drugs\

  • brian.connell.18 - 2012-10-23 07:34

    So the winners got busted. But think on this ..... Tour de France is a gruelling test of endurance, two weeks of hell on wheels. In order for the other competitors to keep up with the leaders, isn't it highly likely that they also took performance enhancing drugs? There's no other way for them to compete. I have no answer to this global sporting problem - except to say that some of the regulations seem ridiculous when a teaspoon of cough medicine or a cup of coffee can ruin an athlete's career. One way to do this, I suppose, is to open up the system completely - if you want to take drugs - take them. Most, if not all, athletes take them anyway.

  • my10cent - 2012-10-23 07:35

    Funny how judgemental society has become - he is inocent until proven guilty!!

      merven.halo - 2012-10-23 09:00

      He's already been proven guilty.

  • henriper - 2012-10-23 07:38

    Is the world (and especially sponsors) so naive to think that all modern cyclists are not on some sort of enhancing substance? It is impossible to climb up the alps at the speeds these guys are doing nowadays without some sort of enhancer. Either allow the drugs, or stop the cycling tours. Why should Armstrong be the fall guy, all tour winners for the past 20 years should then be stripped of their medals. What a farce !!!!

      gordon.turner.37 - 2012-10-23 08:32

      Or ride the tours 30 minutes slower.

      andrew.hamilton.92798 - 2012-10-23 08:40

      "its not about the dope" ? - does anyone really believe that armstrong did this all by himself - over and over again - under severe scrutiny ? - does being the best performing rider in a team of doped up cyclists and facilitators make him the only person guilty ? - sponsors want their money back ? From ALL participants would be fair. Won't stop us from cycling - won't stop us from marveling at the "team" efforts of one of the most grueling tests of human endurance on earth (even if artificially enhanced) and it won't stop us supporting cancer funding - hell, i think i feel a ride coming on ( and a drug free one at that ), take down Lance - but don' ignore the enablers !!

      viva.lebok - 2012-10-23 21:31

      Not only the winners for the last 20 years. All cyclists for the past 20 years. Don't think the guy that came second is clean. Either strip them all or none.

  • tsatsi.golden - 2012-10-23 07:51

    Bolt u are next

      viva.lebok - 2012-10-23 21:31

      shut up idiot....Bolt is a legend

  • shaun.classen - 2012-10-23 09:11

    I'm sure it is not just him...... Maybe he was just that good. So who will be getting 7 medals..... A new cycling hero i guess and a new movie coming

  • james.hurley.1401 - 2012-10-23 10:02

    what a mullet

  • peter.gugelmin - 2012-10-23 11:12

    What hypocrisy. All sponsors who sponsored Lance during his career got major exposure. His Marketing value must have been in the billions. One example, what was Nike's market share of cycling apparel and cycling shoes before and after Lance...? The answer to that one answers the question

      klipkop.degroote - 2012-10-23 12:04

      but now their brands are linked to drugs! or cheaters! its a pickle.

      andrew.mufema - 2012-10-23 14:44

      No sponsor demanded their money back ... jus the one insurance company that had to pay out on policies amounting to 12million dollars that he took out for winning TDF titles. now that he's been stripped of the titles he has to return that money.

      viva.lebok - 2012-10-23 21:32

      exactly, they made billions off his back

  • bob.slap.5 - 2012-10-23 11:19

    charge him

  • bruce.lawson3 - 2012-10-23 13:59

    Now who gets the Tour de France winners title to replace the titles they are taking away from Lance?? What if the second place winners (now first place) are also doping - where does the spiral end?

      andrew.mufema - 2012-10-23 14:46

      those titles are not gonna be re-awarded according to UCI.

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